Gold is frequently viewed as insurance in moments of economic volatility or worldwide political turmoil. However, in 2013, gold prices dropped 24% against the U.S. dollar, marking gold's third-worst decline since 1975. The drop turned many investors off to the yellow metal.
But the current price of gold indicates that the precious metal is back.
"Gold has rebounded from late December into mid-March, tacking on about $200 an ounce, or nearly 17%," Money Morning Resource Specialist Peter Krauth said recently. "To a large extent, I think the bears were exhausted, and most (if not all) sellers had finally sold. So, gold was coming off a technical low and sentiment extreme around the $1,190 price range."
Some analysts project the current price of gold will reach $1,550, with the minimal price range at $1,075. "The majority of the issues that backed gold prices in the first-quarter of 2014 will dissolve," a Dundee Capital Markets of Canada analyst recently stated.
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Certain pressures are shaping the current price of gold, pushing it to regain footing as a safe haven investment amidst market unpredictability and geopolitical unsteadiness in Eastern Europe.
Here's the current price of gold so far for April...
Current Price of Gold in April is Promising
The week of April 7, 2014, gold prices per ounce broke through $1,300, finishing the period at its best since two weeks.
The current price of gold as of April 9, 2014 was as follows:
- June gold ended the day at $1,308.90 an ounce, up $10.60;
- Spot gold ended the period on a high at $1,309.50, up $12;
- And the yellow metal rose 1.1% so far in April, and rose 8% year-to-date.
Here's what's putting gold investors in a prime position to once more benefit from market uncertainty...
Russia Turmoil and Other Events Shaping the Current Price of Gold
Fueling growth during the week of April 9, 2014 was a less than strong dollar and disturbing headlines about the instability of Ukraine. Expert analysts have verified that gold is gaining a breakthrough from safe-haven purchasing interest and by unyielding losses in the United States dollar index. The Russian-Ukraine turmoil returned as a main issue in the marketplace on Tuesday, April 8, 2014.
That week, Russia's foreign minister broadcasted that any type of force used by the Ukrainian officials to apprehend pro-Kremlin separatists could throw the country into a civil war. Separatists were able to take over government buildings in several eastern municipalities in Ukraine.
Gold prices this year achieved further impetus from disadvantages in equity markets, and also from unimpressive March employment data.
Additionally, industry experts believe consumers in Asia are picking up outflows.
"Buying in [Asia] has been exceedingly strong, with China's consumers buying up 41%, setting a new record of 1,065.8 tons and beating out perennial leader India at 974.8 tons," Krauth said.
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